Commentary / Analysis: Real men have fabs, but maybe not Infineon, NXP, TI and ST.
The first argument is the cost argment. Some say that, at $3bn, fabs are too expensive. But if you look at their cost in relation to the market size, their cost is the same.
A fab cost $40m in 1970 when the industry TAM was $2.4bn; they cost $330m in 1985 when the TAM was $21.5bn; they cost $3bn in 2005 when the TAM was $245bn. That’s a 14.1 per cent CAGR over 25 years fro both the market and the fab-cost. So there’s no change in cost.
“It’s just that you have to bet the company when you build a fab, and people have lost the stomach for betting the company”, said Future Horizons CEO, Malcolm Penn
![]() |
E-mail This Article | ![]() |
![]() |
Printer-Friendly Page |
Related News
- Analyst sours on Infineon, ST but touts ARM
- Analysis: Is the ST, NXP wireless JV the start of IDM break-up?
- Five Leading Semiconductor Industry Players Incorporate New Company, Quintauris, to Drive RISC-V Ecosystem Forward
- TSMC, Bosch, Infineon, and NXP Establish Joint Venture to Bring Advanced Semiconductor Manufacturing to Europe
- Leading Semiconductor Industry Players Join Forces to Accelerate RISC-V
Breaking News
- Intel brings 3nm production to Europe in 2025
- RISC-V in Space Workshop 2025 in Gothenburg
- VeriSilicon introduces AcuityPercept: an AI-powered automatic ISP tuning system
- Avant Technology Partners with COSEDA Technologies to Enhance System-Level Software Solutions
- Tower Semiconductor and Alcyon Photonics Announce Collaboration to Accelerate Integrated Photonics Innovation
Most Popular
- Qualcomm initiates global anti-trust complaint about Arm
- Sarcina Technology launches AI platform to enable cost-effective customizable AI packaging solutions
- EnSilica Agrees $18m 7 Year Design and Supply ASIC Contract
- Siemens to accelerate customer time to market with advanced silicon IP through new Alphawave Semi partnership
- Tower Semiconductor and Alcyon Photonics Announce Collaboration to Accelerate Integrated Photonics Innovation